The Financial Conduct Authority (FCA) have recently published rules which ban the sale of crypto-currency derivatives and Exchange Traded Notes (ETNs).

The FCA have asked that investment platforms like HL remove these types of investments by 6 January at the latest. Having reviewed the FCA assessment, we’ve made the decision that from Friday 30 October you will no longer be able to purchase new units in the funds listed below.

You can continue to hold the units you already hold or sell them at any time.

Investment name
 XBT Provider – Bitcoin Tracker Euro

 

We have outlined the FCA’s reasons for their decision below, we recommend you read these and assess your own position and whether or not your investments are meeting your needs.

Why have the FCA made this decision?

The FCA reviewed these products and have outlined the following as reasons for their decision:

  • The inherent nature of the underlying assets means they have no reliable basis for valuation
  • Extreme volatility in cryptoasset price movements
  • Lack of legitimate investment need for private consumers to invest in these products